In the last few years, the inflation rates in India have caused tuition fees to double. The effect is visible on education charges, whether in high school or university. The rising rates and hidden charges have led to many students dropping out mid-courses, but with proper planning and investment, you can prepare yourself for the future.

Inflation in Education costs

How is inflation going to affect education plans in the future? 

The relentlessly rising inflation rates are affecting all sectors. From food to duel, every part of day-to-day necessary is getting hit by the effects of inflation. With the prices increasing in each sector, the education inflation in India is also reaching an all-time high. 

Education inflation directly threatens every child's plan for direct education. Whether you look into increasing tuition fee rates or want to go abroad for higher education, the effect of inflation might make you reconsider your plans for the future. In 2021, the pandemic caused a steep deep, but since then, the inflation rates are slowly hiking up. While the sector recorded 0.63 per cent in April of 2021, it hiked to over 4% in a year. According to experts, the number will only increase in the upcoming months. 

With many institutions doubling their fees post-pandemic, the effects of inflation can easily disrupt a child's dream of higher education and college. Especially if your child dreams of going to universities abroad, you must start saving and investing for years ahead to be prepared to tackle the increasing tuition fees and cost of living. 

How is inflation affecting education? 

Education is one of the sectors that has experienced the most inflation in recent years. In the last decade, while food inflation went up to 9.62%, education inflation rose as high as 10%. 

Some of the common reasons behind education inflation are-

  • Higher cost of living
  • Tuition fees
  • Government reducing funds. 
  • Private school infrastructure
  • Security
  • Technological advancement in education 

Pratham's Annual Status of Education Report 2021 showed a steady rise in education costs. Many graduate courses underwent over a 5% rise, while postgraduate courses and other higher education courses saw a 12-13% hike. This effect of inflation was seen in the number of students dropping out of college mid-courses. The Unified District Information System for Education reports showed that more than 35% of students had dropped out of college due to increasing costs and to support their families. 

Other than the direct costs, there are many hidden charges as well that affect education inflation-

  • Exam registration charges have risen to approximately more than 6.5%. 
  • Then rising fuel costs have increased the transportation charges as well. 
  • Accommodation and food costs are other hidden expenses that usually don't get talked about much but affect education inflation significantly. 

Also read- Government education initiatives you can apply for

Increasing School Fees in India

India's rising education inflation rates have put a heavy burden on many parents. While many parents experienced a decline in their monthly income, tuition fees have only increased in recent years. This includes the tuition fees of many private schools. In the past decade, most families have looked towards private schools to ensure a good education for their children. Still, the recent education inflation is making many families struggle to keep up. 

Affect of Inflation on School fees-

  • According to a recent report, almost 50% of families opt for private education. 
  • Many of them spend approximately 20% of their monthly income on school fees. 
  • Many private schools have increased their fees by 10-15%. According to them, it will be challenging to maintain the quality without it.
  •  But with everything skyrocketing, many families struggle to keep up with it. 

Also read- How to finance your child's education

Affect of inflation on higher education-

The need for proper education planning is very urgent. The tuition fees of colleges and universities have increased enormously and will most likely increase by a lot with time. National Sample Survey Office (NSSO) report highlighted how university education charges have gone as high as 16% in the last decade. 

For parents, looking into investment plans to save for the future is becoming urgent. Whether you choose to study abroad or not, the tuition fees and cost of living could be three or four times what it is now. 

The rising cost of education abroad-

  • Post covid, many universities announced a hike of 2-3% in their tuition fees, and with the value of the rupee going down recently, the cost of studying abroad will go up a lot. 
  • According to a report by, the annual inflation was 8% higher, which was more than the overall retail inflation. The average fee of a four-year graduation program rose from $31,700 in 2011-12 to $37,600 in 2020-21.  The cumulative average cost of universities in the US rose by 497% between the  1985-86 and 2017-18 academic years. These increased rates are more than twice the annual inflation of the same period. 
  • These increased numbers are not significantly different from other major countries like Canada, the UK, Australia, etc. 

Also read- Are you ready to meet foreign education costs? 

Education inflation has left many families with two options: compromise with a child's future or spend more than they can afford. The increasing tuition fees and hidden charges have led to parents and students taking huge loans or dropping out of college. But proper investment plans can help families meet the education charges in the future. A little saving done early goes further in the future. 

The education inflation is real. While it does not get talked about much, it is undoubtedly affecting many families. As a parent, you can avoid getting into substantial education debts by investing early and adequately. Whether you choose to go abroad or study in India, these savings can help you choose the path you want without worrying about inflation rates in India. 

Why higher education is becoming more and more expensive